AMANI, AGHNA ZARRA and Trihastuti, Nanik and Rahmanda, Bagus (2023) IMPLEMENTATION OF HARDSHIP PROVISION AS AN EFFORT TO RENEGOTIATE POWER PURCHASE AGREEMENT IN INFRASTRUCTURE DEVELOPMENT WITHIN ELECTRICITY SECTOR. _216 Dagang 2023. Undergraduate thesis, Fakultas Hukum Universitas Diponegoro.

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Abstract

The outbreak of the COVID-19 pandemic in 2020 had far-reaching implications for contractual agreements, introducing a heightened risk of contract breaches. Responding to this unprecedented situation, President Joko Widodo of Indonesia issued Presidential Order No. 12 of 2020, officially designating the spread of the Corona Virus Disease 2019 (COVID-19) as a national disaster, even though its origin was non-natural. The government's adoption of Community Activity Restrictions (PSBB) as a policy measure significantly impacted numerous businesses, especially in terms of their ongoing contractual obligations. Within the business community, there has been a prevailing interpretation that views this presidential decree as a legal basis for invoking force majeure. This research employs a juridical-normative approach, involving the examination of theories, concepts, and a review of relevant laws and regulations. This approach regards law as a system of norms derived from statutory regulations, agreements, and doctrines. The methodology utilizes secondary data with a descriptive-analytical research specification. The research findings reveal that the COVID-19 pandemic constitutes a hardship event, altering the equilibrium of contracts and falling within the category of an "abnormal situation" thus not meeting the criteria for force majeure. Although the COVID-19 pandemic can be categorized as a hardship event, the Power Purchase Agreement (PPA) contract between PT. PLN and PT. SGPJB treats the pandemic as a force majeure condition. The author contends that parties involved in long-term contracts, particularly in Power Purchase Agreements, should incorporate a hardship clause to maintain the contract's equilibrium. Given that Indonesia does not currently recognize the hardship doctrine, there is a need to amend the Indonesian Civil Code (KUHPerdata) or establish new regulations to facilitate the inclusion of hardship provisions, especially in lengthy contracts. A comparative analysis with countries that have well-established provisions for contract hardship can offer valuable insights to inform these legal reforms.
Keyword: Hardship Provision, Renegotiation, Power Purchase Agreement.

Item Type:	Thesis (Undergraduate)
Subjects:	Law
Divisions:	Faculty of Law > Department of Law
Depositing User:	Mr Perpus FH1
Date Deposited:	04 Jan 2024 07:28
Last Modified:	04 Jan 2024 07:29
URI:	https://eprints2.undip.ac.id/id/eprint/19739

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